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Silva Fennica 1926-1997
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Acta Forestalia Fennica
1953-1968
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1913-1932

Articles containing the keyword 'land expectation value'.

Category: Research article

article id 637, category Research article
Hirofumi Kuboyama, Hiroyasu Oka. (2000). Climate risks and age-related damage probabilities – effects on the economically optimal rotation length for forest stand management in Japan. Silva Fennica vol. 34 no. 2 article id 637. https://doi.org/10.14214/sf.637
We estimated the damage probability according to age class and major climatic disasters based on ‘Statistical Yearbook of National Forest Insurance’ from 1960 to 1996. The probability of snow damage is high for young stands, then gradually decreases with age. On the other hand, the risk of wind damage gradually increases with age. Decisions about rotation age should be based on the distribution of damage probability with stand age. Risk of damage has two contradictory effects on the optimal rotation period; one is that the rotation-shortening effect caused by risk of damage around harvest age; another is the rotation-extending effect due to decrease of rent by the risk of damage through the raising period. Change of optimal rotation depends on the relative magnitude of these effects. We examine this by calculating land expectation value (LEV) using a simulation model with the empirical damage probability, price and cost. Change of the optimal rotation period obtained from the national average damage probability is not significant. However, the optimal rotation is shorter in high wind risk areas and is longer in high snow risk areas. It is because the damage probability for a mature stand is high in the case of wind and low in the case of snow. In addition, the extent of decrease in LEV is smaller for wind than for snow. The results of simulation based on empirical data confirm that the optimal rotation period can become either shorter or longer through incorporating risk in decision making, depending on the damage probability distribution with stand age.
  • Kuboyama, Forestry and Forest Products Research Institute Tohoku Center, Nabeyashiki 72, Shimo-Kuriyagawa, Morioka, Iwate, 020-0123 Japan ORCID ID:E-mail: kuboyama@ffpri-thk.affrc.go.jp (email)
  • Oka, Forestry and Forest Products Research Institute Tohoku Center, Nabeyashiki 72, Shimo-Kuriyagawa, Morioka, Iwate, 020-0123 Japan ORCID ID:E-mail:

Category: Article

article id 7220, category Article
T. Heikkilä. (1929). Der forstliche Zinsfuss. Acta Forestalia Fennica vol. 34 no. 7 article id 7220. https://doi.org/10.14214/aff.7220
English title: The interest rate of forest.

The result of forest valuation depends heavily on the interest rate and hence determining the rate of interest for forest is the one of the most important tasks of forest valuation.

When defining the interest rate for forests, we need to take into account not only the common interest rate in the country, but also other factors. Those are for example the increase in timber price. By calculating the land expectation value we assume that costs for felling, regeneration and other management will rise by same percent.

The article presents the common formula of land expectation value and discusses its pros and cons. Because of the bad condition of Finnish forests, the forest valuation has not been used widely in practice and hence also the research on theme has been minor. The development of the forests in future will make the theme more relevant. 

The volume 34 of Acta Forestalia Fennica is a jubileum publication of professor Aimo Kaarlo Cajander.

  • Heikkilä, ORCID ID:E-mail:

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